This is a story about an American family and their fight to save their home. It is a story about the lies, victimization, and callousness that this family has had to endure at the hands of their bank. It is a story about Regina Grasberger and Wells Fargo.
About three years ago, Regina’s husband, Frederic, lost his job. He was denied unemployment, and up until the unexpected loss of income, the Grasberger family had a near flawless credit rating. Their hope was that Frederic would be able to find new full-time work relatively easily, but three years later, that hope remains unrealized. Both Regina and her husband are working multiple part-time jobs in an effort to make ends meet. Currently, they are barely getting by financially. In terms of their home, Regina and Frederic decided that the only constructive option available to them is to apply for a loan modification.
The Grasberger’s housing woes began a number of years earlier. It has come to light that the origination of their mortgage in 2005 is littered with fraudulent manipulation, something which Regina has iron-clad proof of. The evidence came about as a result of an audit of their mortgage conducted by NACA, and Regina’s reviewing of her loan origination documents. Among the glaring irregularities that have been uncovered is the fact that on her loan application, the mortgage company at the time, Arrow Mortgage, claimed that the family had $2.5 million in liquid assets, when in reality they had $26,000 before they started using funds from their 401K to make their mortgage payments. Arrow Mortgage altered all the financial data on the family’s loan application, and Wells Fargo didn’t bother to confirm the accuracy of the information. The Grasberger’s only learned of this illegal activity a few days ago.
All the Grasberger’s are trying to achieve today is to receive an interest rate reduction on their mortgage. What they are getting however is nothing but lies and excuses from Wells Fargo.
- She was advised by a Wells Fargo representative to stop making her payments because she would not be considered for a loan modification unless she was behind on her mortgage. This in itself is incorrect. Note: A HAMP loan modification can be applied for even if a homeowner’s payments are completely up to date.
- Regina was led to believe by the bank representative that she would qualify for a HAMP modification, only to be told afterwards that the investor associated with her mortgage would not entertain it.
- In addition, Wells Fargo then also informed her that she would not qualify for their private loan modification program either.
- Regina has now been trying for two and a half years to obtain a loan modification with Wells Fargo. She has been rejected at least 3 times, and this after being told numerous times that the HAMP option would help her and that Wells Fargo themselves have numerous private modification programs that would benefit her.
- She received a letter of rejection from Wells Fargo informing her that she did not qualify for a temporary rate reduction because she had not stopped making her loan payments when they suggested she should. 3 days after that, she received further written communication that officially confirmed that her application was rejected, and that she should contact HUD or HOPE for further assistance.
- After repeated failed attempts to contact the bank representative who was supposedly working on her case, she was told by Wells Fargo that her file was closed and that she had no access to it. After insisting numerous times on speaking with her representative, Regina eventually made contact, only to be told that her mortgage is controlled by a private investor (mortgage backed-securities) who does not want to offer her a HAMP or propriety loan modification. This investor refuses to entertain the possibility of principle capitalization on her mortgage even though her figures are minimal compared to the National Average (a mere 2 months behind at $2,087 per month).
Her personal point of contact at the bank refuses to speak with her. Repeated attempts to have a conversation with a Wells Fargo manager have been unsuccessful. None of these individuals are ever available, no matter when or how often she calls. Wells Fargo has denied ever receiving her paperwork. They failed to confirm the accuracy of her loan origination documents. They have on numerous occasions indicated that she would be receiving assistance, but that assistance was never offered. To add insult to injury, in a move which can only be viewed as a blatant attempt to cover their backsides in the event of any subsequent legal proceedings, a bankruptcy specialist at Wells Fargo had the nerve to send her a letter a few days ago claiming that they’ve been repeatedly trying to make contact with her in an attempt to help her, but that she was never available to answer their calls! It is nothing short of outright hypocrisy and dishonesty.
Beyond this point, all her attempts to call the bank connected her to a voicemail service that instructed her to call back in 2-3 days. Although she was told that she is not qualified for a loan, on 1/25/2012, she received a letter with a foreclosure date on it. This is the hardest thing to understand? Where is the logic here? She was told that her application was denied because she was not 3 months behind on her mortgage (which she was, based on the advice she received from Wells Fargo). Literally one day after Regina made a mortgage payment, bringing her loan to 2 months behind, she received the foreclosure notice. Years of trying to communicate with Wells Fargo, and all she got was dismissal. One day after falling short of one of their ridiculous and incorrect loan modification guidelines, she gets a foreclosure notice!
After many unsuccessful requests from Regina. Wells Fargo has finally shared the identity of the private investor with her. It is known as Mortgage Backed Securities, and this could be at least ONE of the reasons why she has not obtained a loan modification. Mortgage backed securities companies have bought “credit default swaps” against mortgages, including sub-prime mortgages. These credit default swaps operate like an insurance, whereby the mortgage backed security would be at least 100% refunded by the “insurance” if foreclose occurs. So, they essentially have no motivation to provide a loan modification and take a small loss, but prefer to recover the entire amount given in prior years. Here is more information on mortgage backed securities.
Why did Wells Fargo not have the common-sense to check upfront whether or not the mysterious private investor had any inclination of entertaining her loan modification application? Why did they never perform due diligence in checking her loan origination documentation? Why has the bank repeatedly dismissed her attempts to receive help or counsel from anyone? Why are they now blatantly lying and in effect accusing her of causing the rejection of her own application because of alleged unavailability and lack of interest on her part? Regina and her family are distraught, they are angry, and they are scared. Their home represents their security, their safety, their future.
Based on the conduct of those at Wells Fargo, they for their part have clearly indicated that they simply don’t give a damn. This is the nightmare of a story that Regina and her family have approached Mycaal.com with. And you can bet your bottom dollar that their story is by no means unique. It is a story that continues to unfold across the United States by the millions.
About Carla Ghosn
|CEO and Founder of Caal (mycaal.com) keen on helping American homeowners save their home. If you need help with your loan modification, visit www.mycaal.com
to get help on pre-qualifying your loan for approval, as well as preparing and printing your loan modification package online.